higher. i think the caterpillar weakness is not one of my closely one to own stocks, but the weakness is buyable, not sellable. yes, managers are worried about keeping up with the averages because most got to make that money somehow between now and year end. i'm jim cramer, and i will see you tomorrow. hey, larry, what do you have for us? >> jimmy, 44 days in the election. mitt romney is making a tax cut on middle class people. he's increasing take-home pay. that's what worked to get reagan elected. question, will it work for romney? good evening, everyone. i'm larry kudlow. this is "the kudlow report." our top story tonight. iranian president mahmoud ahmadinejad declares israel would be, quoting him now, eliminated. and what is president obama going to do about this, not meeting with world leaders, not meeting with israeli prime minister netanyahu? this is when president obama

says israel is one of our best friends in the region, just one. instead, he's yacking it up on daytime talk shows like "the view" and while there he refused to call the libyan attack on our embassy an attack of terrorism. tonight we'll look at one more sign of the weakness of this amateur president instead of a world leader. also this evening, the battleground now shifts. new numbers now out shows mitt romney gaining ground on middle class families, a 14-point lead over president obama. romney's now making the point that his middle class tax cuts will give much more take-home pay to middle class folks. douglas holtz eakin walks us through the numbers. a punch line at last night's emmys but it is true. american liberals are being brainwashed by hollywood, and hollywood is being brainwashed by obama. we're going to reveal how one network's primetime show shilling for obama care. first up this evening let's get back to our top story. iranian president ahmadinejad calls for the destruction of

israel. what does president obama do? he labels any calls for american action noise, quote, unquote. cnbc's own john harwood joins us now with the details. good evening, john. >> reporter: good evening, larry. a rare day in which the campaign trail was dominated more by foreign affairs than by domestic economic affairs. you had mitt romney out there taking advantage of remarks the president made on "60 minutes" the night before when he talked about some of the foreign policy events as bumps in the road or noise out there. mitt romney in colorado, did an interview with nbc's peter alexander, says that's not how he thinks of those events at all. here's mitt romney. >> the president characterized as bumps in the road the developments in the middle east. we've just had an ambassador assassinated. egypt has elected a muslim brotherhood person as president. iran is on the cusp of having a nuclear capability. we have tumult in syria and also in pakistan. i don't consider these bumps in

the road. >> reporter: now it was a natural turn to foreign policy because world leaders are gathering in new york for the united nations general assembly, including the iranian leader, who, as you mentioned, spoke at a breakfast this morning and talked about israel not having any roots in the region and suggested it ought to be wiped off the map. president obama did not respond to that statement. president obama keeping in mind the needs of his campaign trail, went to t"the view" and i think you would expect the president would try to avoid making any waves in that speech. larry, he's got a lead nationally if you look at the average of real clear politics of 3.7 percentage points in national poll, and in every single battleground state, he's also leading, including north carolina, although it's a very narrow margin there, larry. mitt romney's got some ground to make up. >> john, were you surprised on the "60 minutes" interview that president obama labeled this whole middle east thing bumps in

the road? i don't think i'd heard that before. just sounded a little cavalier to me. what's your thought? >> well, it sounded cavalier. the white house tried to clarify saying he was taking the longer view in terms of changes of multiple reviews in the middle east and wasn't minimizing the events he called bumps in the road, but this is a campaign where the opposition is going to seize on anything you say, certainly barack obama's done that to mitt romney, and now mitt romney and his team are doing that to obama. >> many thanks, john harwood, washington, d.c., appreciate it. those are the facts. now let's get to the analysis. let me get this straight. instead of meeting with world leaders, president obama went on "the view." and while iranian president ahmadinejad declared to the u.n. that israel would be eliminated, the u.s. delegation stayed in their seats. huh? stayed in their seats. where's the president's leadership? i thought they at least walked out. i guess not. joining us now, ambassador kristen silverberg, former assistant secretary of state and now serves on the romney foreign

policy and national security advisory team. with us our pal and former deputy undersecretary of defense jed babin. funny, i wasn't going to ask this question but i just learned. nobody got up and walked out. the u.s. delegation did not walk out while ahmadinejad is ranting and raving. what's up with that? >> well, the israelis did, and what's up with this is the toleration, the toleration of the obama administration, the toleration by president obama himself of some of the worst dictators and despots around the planet. when you sit there and give respect to this man by listening to him, it's outrageous, larry. obama is the un-leader. he is vacating and abdicating our role as a superpower in the world, and we need to be pointing that out long, hard an continuously. >> ambassador silverberg, bumps in the road. israel is, quote, one of our best friends in the middle east. do we have a better friend in a middle east than the democracy israel? i mean, egypt has completely

changed now, burning our flag down. what is obama -- does he in fact inside that head of his understand what's at stake and what his own policy is, or had he just winging it on a day-to-day basis, doing a lot of damage in the process? >> you know, it's not just about his comments last night. we've had four years of the u.s. disstancing itself from our closest ally in the region, israel, and it's dangerous. it not only makes the israelis feel less secure, but it sends this dangerous signal to the retheme in tehran. you know, as you pointed out, ahmadinejad is in new york calling for israel's elimination. we are at a very dangerous point in the iranian nuclear program. they are very near prear crossi point of no return and every time obama suggests there's a gap between the u.s. and israel, that's an invitation for the iranians to take advantage of it. >> ambassador, let me just ask you, because you used the phrase. you said israel is our closest ally in the middle east. that is a phrase that president

obama can't seem to get himself to say. why is that? >> you know, i don't know. this is a bipartisan consensus. this isn't just a departure from the policy of republicans in congress. there has been a bipartisan consensus in the united states for many years that the u.s. and israel are the closest of allies, that we have to tackle problems in the middle east together. it's why you see legislation passing the united states senate 99-0 when it comes to confronting iran's nuclear ambitions and supporting -- supporting our closest ally israel, so it's a very strange position for him. it's really out of -- really out of sync with a broad bipartisan consensus in this country. >> jeb, let me go to you. i want to go back to libya and benghazi and that whole story. front page "new york times." we lost most of our intelligence assets because of this snafu, because of this mistake. the cia lost a lot of intelligence assets. we may be wiped out. now, again, president obama in

the "60 minutes" last night could not get himself to say that this was premeditated, that this was a terrorist plot. he's still hanging on to the video story which, as you know, is a falsehood. i call it a lie. i believe ambassador, u.n. ambassador susan rice, should have been made to resign, or she should have taken the honorable route and resigned herself after misleading the entire country. but how can it be that obama himself cannot bring himself, like israel being our best ale, cannot bring himself to suggest that there was a complicated, a complicated and large terrorist plot around the killing of our ambassador and our agents in the embassy. >> well, larry, let me just go back to something the ambassador was saying. she's a diplomat, and has to be diplomatic. i'm not a diplomat. i don't have to be. let me say it really plainly and firmly. since 1979 when they took power, there's never been a diplomatic

behavior that changed. they have been lying about nuclear weapons since 1991 and the chances of talking them out of their nuclear weapons program is zero. the issue with obama he can't bring himself to face any issue before november 6. wants to get re-elected and will push everything aside to get there. what he's doing with the benghazi situation, you're right. call it a falsehood or a lie, whatever it is. it's just not true. we did lose a lot of int intelligence people there. the two s.e.a.l.s, former s.e.a.l.s that were killed in the ambassador's residence or near the consulate. those guys were not there to protect him. they were intel assets, i'm told. they were there to try to track the thousands of what we call the man pads, the man portable air defense missiles, the shoulder-fired stingers and so forth that have been lost since gadhafi fell. the whole thing in libya is a mess. obama helped bring it about. >> right. we knew ahead of time. we are learning so many interesting things about this. we were warned. we knew. the ambassador knew, bless his

heart, rest in peace. we knew all this. >> yes. >> ambassador silverberg, i want to go back to this other issue before we lose both of you. it's become somewhat of a cliche. with the thug like ahmadinejad saying what he's saying here in new york and mr. obama not willing to meet with prime minister netanyahu, i just feel, maybe naively, maybe it's a cliche, but it sends a signal, and it sends the wrong signal. >> of course. >> we knew that ahmadinejad was going to say pretty much what he said but for not meeting netanyahu and going on the television show which is a frivolous undertaking is extraordinary in my opinion and sends all the wrong signals. >> i completely agree. this is the time of firmness with iran, for resolve and sending a clear signal to all of our allies. here is our clear red line. here's what we're going to do about it, and instead we have this muddied situation where the iranians have concluded that actually we're no longer

supporting israel. >> i don't want to interrupt. we're on the same wavelength here, but it just seems to me that everything netanyahu has said, that the economic sanctions against iran may be working, okay, maybe, but the fact of the matter is they are still building nukes. if i were mr. obama or any american president, democrat or republican, could be bill clinton or whoever, i would want to have solidarity with netanyahu, right now, with ahmadinejad here in the driver's seat making these crazy speeches. i would want to show solidarity, miss silverberg. >> absolutely. >> it's just not a question of showing and sending signals, we've got to actually do something. >> all right. we've got to do something. this thing is just drifting in the wrong direction. ambassador kristen silverberg, thank you very, very much. we appreciate t.jed babin, appreciate. coming up on "cud low," money managers mulling whether or not to take a time-out as stocks close in on record highs. but wait for my next guest to say the market is ready to rally even more.

later on, the battle for the middle class. romney finally figures it out. tax cuts, more take-home pay, more jobs. who could ask for anything else, and don't forget, as always, free market capitalism is the best path to prosperity. that includes tax cuts and more take-home pay. i'm larry kudlow. we'll be right back.

stocks were on a tear, at least for a while. the s&p 500 has gained almost 30% from where it stood a year ago. apparently some money managers who caught this rally are actually mulling whether whether to sit out the rest of the year. my next guest believes stocks could keep rising. here now is "fast money" contributor brian kelly, co-founder of shelter harbor capital. you know, brian, there's so much event risk around nowadays. you can't tell what's going to happen in the middle east. you can't tell what's going to happen in europe. you can't tell what's going to happen in the american elections. how can these guys actually sit out the whole quarter? >> i'm not really sure how you can sit out the whole quarter. i guess if you're up 30% for the year, why wouldn't you probably take some off the table? but with volatility so low, can you also buy some puts. not only that, there aren't a

lot of money managers out there that are really that far ahead of the averages, so more likely is the fact that people are behind, and you can get kind of this self-fulfilling type of rally going on as the market goes higher. money managers have to participate over the next -- over the next quarter. >> just in a technical sense, don't a heck of a lot of these hedge fund managers have to stay in, have to maneuver because they haven't done all that well this year? >> yeah, and i think that's -- that's part of what could drive this rally is that you have a lot of people who don't believe this rally. a lot of hedge funds underperforming, and if the market does start to rally over the next couple of weeks, next couple of months, you are going to have people have to chase that type of performance. there's no doubt they are a headline risk. just talked about what's going on in the middle east. we don't know what's going to happen with that, but what i do know is that the european central bank, the federal reserve and the bank of japan have all turned on their printing presses, and the

federal reserve has actually changed this. isn't just regular qe. this is qe, even if the economy gets better, so to me, i know that they are printing money and that asset prices go higher and, that and i have a potential chase for performance. that's a market i want to be long. >> so qe in perpetuity, never really seen anything quite like this. just for your own strategy, you're buying stocks. you're buying commodities. you buying gold. tell us about your strategy. >> yeah, yeah, i mean, essentially the investment strategy at this point is we're in a liquidity-driven bubble-like market. we look at some of the fundamentals out there. caterpillar a perfect example, not doing great, yet the futures right now are even higher, so you want to buy commodities. you want to buy gold and silver. certainly best currencies out there to buy are gold and silver. i'm also long copper. i think that's another way to play it. any of these metals where people can actually take the metal and put it in storage, take that -- take that supply off the market. it doesn't cost much to store these metals, and then can you

create a supply-demand inbalance by doing that. i like that. i also think that the grains do well here. they have come off a bit, but people are not stopping eating in this environment, so you want to be long the grains as well. >> brian, just give me a lightning round. let me raise some issues here, ii'll call them event risks. profits actually fall in the quarter. profits fall. how big a risk is that, lightning round? >> i think it's a bick risk but i don't think it matters to the market. >> doesn't matter to the market. let's go into the political stuff. barack obama re-elected. in fact, barack obama re-elected and the republicans fail to take the senate. what's -- what does that mean to the stock market? >> i think it's already priced in. i think at best the most positive thing for the stock market is to say perhaps maybe somebody when ben bernanke's term is up that you get another dove in there. >> so wait a minute. let's just think this. you're saying re-elected obama is priced into the market. a democratic senate is priced

into the market. therefore, let me ask, is a fiscal cliff, because that is going to be another confrontation between the republican house and the democrats in the senate and the white house, that means we're going to fall off the fiscal cliff, at least for a couple of months. that's a recession. what does that do to stocks? >> that will hurt stocks at that point in time. i'm not completely convinced -- it's not in everybody's interest to really go over that fiscal cliff, so what the market has priced in is that we're not going to go over the fiscal cliff. that would be one thing that would really concern me, and we have basically fiscal policy going against monetary policy, the two biggest forces in any economy. they are head to head right now. if we can get a little bit of movement on the fiscal cliff, that would be positive for stocks. >> as quick as you possibly can, two additional country risks, europe and china. hell, we're covering a story tonight, china factory workers are in rebellion against their bosses and against the communist government and against everybody. the economy stinks. they are not getting their wage

increases that they want. what kind of risk is that? >> i think it's a minimal risk at this point. the export-driven economy trying to transits into a domestic consumption economy. going to be bumps along the road, but i'm not worried about that. >> you haven't said anything about europe. you okay with europe? >> i'm long european stocks. i love them. i think the tail risk is began. >> all right. great stuff. fascinating. brian kelly works really is quite optimistic. shelter harbor capital, thanks very much. coming up on "kudlow," birth control for 14-year-olds without a parental notification? get this. kept secret for more than a year. my goodness. the full story on that, plus more late-breaking headlines coming up next. -[ taste buds ] donuts, donuts! -who are these guys?

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high speed, amtrak trains. really? sounds like a contradiction in terms, but they will be rolling tonight faster than ever. cnbc's' own jackie deangelis joins us with all the latest on that and all the late-breaking headlines coming into cnbc news. good evening. >> good evening. amtrak acela express trains will run at 165 miles per hour tonight but it's just a test. without paying passengers, amtrak is making sure that four sections of the northeast corridor track can handle the speed and that riders can move safely aboard the trains. the test areas from 21 to 29 miles are already rated for speeds of 130 miles per hour or

more. the test will run into next week. meantime, new york city's school system has been quietly operating an emergency contraception program for more than a year providing morning after pills to students as young as 14. 13 schools are in the program this year. the story surfaced in news reports. parents were given an opportunity to opt out, but few did so, meaning that students can be given the pills without their parents being aware. and finally tonight, you may notice a smaller crowd at your polling place on election day. early voting is already under way in two dozen states with more to come in battleground states like colorado, nevada and florida. more than half the ballots are expected to come in early. all before presidential debates or the final month crush of tv ads and candidate rallies. of course, larry, we'll be watching for those as well. >> we'll be covering those debates here at cnbc as well. many thanks. snaebs's jackie deangelis. coming up, the battle for the middle class. romney ramps it up with a new

campaign slogan that has some real curb appeal. more tax cuts, more take-home pay, more jobs. i'm going to break it down and show you how much more you'll take home under a president romney. that is next up. now, that's what i call a test drive.

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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, what is going on in china? factory workers in full revolt against their bosses, the communist government and the u.s., where is all this going? plus, did you see those left-wing liberals at the emmys making fun of conservatives and

republicans? janine turner will help me expose how two abc shows are shilling for obama care. i'm shocked. but first up, more tax cuts. more take-home pay. more jobs. that's mitt romney's new motto as he and president obama battle it out for the middle class vote. overall the race is tight with national polls right inside the margin, but in the latest politico/george washington university battleground poll, a highly respected poll, romney has a clear lead with a double-digit 14-point advantage over president obama among middle class families. seems like something is working. here to talk about is a democratic pollster and charlie black who is an informal romney adviser. charlie black, you've been an informal adviser to everybody on the planet, including yours truly. >> even to you, larry. >> i want to ask you -- linda's going to go berserk in a minute,

but i want to ask you first, give it to you first. in the poll, romney's got i think a 14-point lead against a category called middle class families. now that seems pretty darn impress i have to me, charlie black, but you tell me. you've been in the game longer. >> well, it is impressive, larry, because it constitutes a majority of the electorate, but, listen. middle class families have figured out they cannot afford another four years like the last four years. middle class families, many have family members that are unemployed, but all middle class families have lost an average of $4,000 in take-home pay since the president took office, and the price of their gasoline has doubled. so what if you had another four years of this? would you lose a total of $8,000 in take-home pay? would gasoline be $8? they figured it out. they want a change >> i know that romney -- i know that obama is ahead 50/47 in the

overall poll. >> yeah. i was wondering when you were going to get to that? >> this was really kind of surprising, kind of like a bomb. >> well, here's the deal. the middle class families is defined in this poll represent 54% of american voters, and this is the problem with conservatives. you only want to represent half of america, but you know what? on election day everybody gets to vote, so if you look at 100% of the american voters, then you have romney behind three points. you have the president's job approval positive. you have romney net negative in his favorability. this is the news of bad news polling for the republicans, and, unfortunately, for them they don't get to represent just 53% or 54% of america. the president is supposed to represent all of america. >> well, celinda, you know me. i want everybody's taxes to be cup. i want everybody to be rich. i want the top 50% to get rich. i want the bottom 50% to get rich. i want the non-rich to get rich.

now, i do want to ask you though. there was a second issue in here. overall in the middle class results, it was 48-48. now i'm -- what's the difference, i don't want to get too far in the weeds, but middle class families for romney by 14 but overall middle class voters are at an even split. what does that mean? just confuses me. >> overall, all voters, we're winning, but the difference is that middle class families as defined this way tend to be disproportionately married and there is a big marriage gap in america today. married voters tend to vote more for romney and unmarried voters vote for obama. half of america sun married today. so, you know, romney doesn't get to represent the half he chooses. he has to accept the votes of all of america, and when he does, that he loses. >> well, listen, larry, listen. the fact is that 100% of the voters need and deserve a tax cut, just like you said. what the american people want is jobs. they want economic growth. governor romney admittedly had a

couple of bad weeks here in terms of getting off the jobs message and being distracted, but when he's back on it, as he is the last couple of days, and as he will be from now on, people are going to realize they can't afford another four years of this president's economic policies. it's true that 100% of the people, if they even -- even if they don't pay taxes, fear the deficits, the debt, the fact that when they need social security and medicare it might not be available. >> charlie, let me ask you. a lot of talk about retooling his message and so forth. i thought i saw some of it last night on "60 minutes." i want to get both of your opinion. i'm sure it's going to be different. seemed like last night he was talking tax cuts more than he has for several months. in fact, i haven't heard romney talk tax cuts in such a long time i forgot that was on his agenda. last night he did. he did talk about middle class and take-home pay. is this the kind of retooling that we've been hearing about in ed gillespie and others?

>> well, he has talked about those things, but i think putting them together in a package with repetition, repetition. what the governor is going to do is be more specific about how his five-point plan will create jobs and domestic growth. domestic energy production, lowering taxes and taking regulation off small businesses, reducing the deficit, improving education and job training, and expanding free trade, fair trade, but free trade, and he's going to do those five things, and the more people hear about this, the more it's common sense that that will create jobs and grow the economy. >> celinda lake -- >> you and i were around when ronald reagan cut taxes and reduced regulation and created 20 million jobs in eight years in a country that was smaller and had a smaller labor pool, so we can do this. >> celinda, i want to go back to you on this. president obama, i know he wants to raise tax rates on the upper end. he wants the bush tax cuts to be extended for the middle class, but the interesting thing, celinda, and the reason why

romney may have the upper hand this second on this, mr. obama has no tax cuts. he's saying extend the bush tax rates for the middle class, whereas romney is saying i am going to lower their rates. now, we're going to get into the details in the next segment on what that means, but isn't that odd? obama really has no tax cuts and in a very hurting economy. >> it's not odd, and it's not true. first of all, right now the voters rate barack obama ahead of mitt romney on taxes by five points. we have an advantage among who would do bert on taxes, and the reason we have an advantage is because we think the wealthy ought to start paying their fair share. the last thing the wealthy need is another additional tax cut which would undoubtedly benefit mitt romney. we would know how much if he would release his taxes, but we don't need another tax cut for the wealthy and then cut education for our kids, cut medicare for our senior citizens. the voters have had enough of this -- of the wealthy not paying their fair share, and if

you do right in america, you ought to do right by america. you ought to start paying your fair share. >> governor romney has said that the wealthy will pay about the same amount under his plan, but what he's going to do is close some loopholes and reduce rates which will allow them to invest more and investment creates jobs, not government spending. private investment creates jobs. >> how about this as a tax cut which we could close right now. close the tax loophole for shifting jobs overseas. barack obama is for t.mitt romney is not. >> there is no such loophole. you're talking nonsense. the only observe -- >> talking nonsense and public beliefs. >> the only tax preference that governor romney has said he wanted to keep definitely is the research and development tax credit which, again, creates innovation and jobs. it's what america is all about. >> all right. >> other tax preferences are on the table to governor romney. >> i've got to leave it. me, i'm a complete free trader as long as everybody plays by the rules. i also want to add one other thing -- >> larry, everybody doesn't play

by the rules. that's the problem. >> then we'll take them to the world trade organization. that's the way that game looks. if you look at romney's tax returns by some estimates the guy has paid $50 million in charities over the last 20 years, $50 million in charitable contributions over 20 years. now, love him or hate him, you've got to admit, $50 million in charitable contributions is one hell of a humanitarian thing. i've got to say, somebody ought to give him credit, and i hope i just did. celinda lake, thank you, great to see you as always. charlie black, welcome back. i want to break down some numbers. let's see if we get this right. middle income tax cuts. the middle income tax cuts. now, we're going to start down -- i believe this is the right. this is the lower end. the old rate, let me just get this right. the old rate 25%, okay?

the new rate is 20%. so you're going from 25% to 20%. the savings, if i can circle this around, the increase in take-home pay from this cut is $1,600. now, that's several months mortgages for a whole lot of people who are kind of in the lower middle class end. it's not nothing. it's something. now, for the middle, now i'm going to call this the middle middle end, okay? 28%, let me see if i get this right. 28% goes down to 22%. these are people i'm going to guess making about $100,000 a year. you can't do this to perfection, but they would make, increase of take-home pay of $3,600. going from 28% to 22%, is worth $3,600. that is a very substantial tax cut and increase in take-home pay. and finally, for the upper middle income people, they go

from 33% down to 26%. this is the people i think president obama talks about, $200,000 a year, $220,000 a year, and they would get a $15,000 increase in take-home pay. the point of the exercise is to show you that romney has significant middle class reductions in marginal tax rates which will yield substantial increases in after-tax income. if only he would just say it. that simply, because that's the way ronald reagan used to say it, and it worked. now, another guy who says it is douglas holtz eakin, if i clear my chart, he's former director of the congressional budget office. dougy, i want to get your take on this. i heard romney, and i think i saw a picture of it on the bus. he is now talking about take-home pay and jobs. now, that's what i call progress, because i haven't heard him talk in those direct

simple terms. what are you thinking? >> i think that's exactly right, larry, and the part about this that isn't on those charts that is so important is that the main reason to do this, which is the first step towards fundamental tax reform, is to have that economic growth and take the people out of work and give them a job. that swamps $15,000 in take-home pay from a tax cut. that's going from zero to a standard of living, so that's a central part of this argument, and the important thing is that step one in tax reform is not raising taxes, and that's where we see the difference between the president's philosophy and what governor romney is trying to push. >> that's right. i really want to focus on this middle class thing. the president and democrats are making the charge that romney is going to raise middle class taxes, okay? these data points, can i go right back. 33, 26, no tax increase. there's a tax cut of $15,000. can i do it again? hold on a second, just real fast. let me see if i can do this. 25 to 20, you make another 1,600

bucks, okay, and let me go to the last one, here. 33 to 26, you make an extra $15,000. now, look, dougy, these are the middle class, the high middle class, the median middle class and the low middle class. what is obama talking about that romney is volcano tax increases for the middle class. it's simply not true. these are his numbers. now what's the problem here? >> well, i think this is just scare tas, right. we know that -- that the president is not doing well with the middle class in the polling. we know that his policies have been unpopular for the past four years, so the quickest thing he can do is try to demonize his opponent by saying he's going to raise taxes on the middle class and cut taxes for rich americans. that's it. >> these numbers show he is not. i want to make one more point. i'm a tax reformer. i'm a tax reformer. i say to you because the top tax rate will come down from 35 to 28, that's where the reform should come for now. that's where the mortgage

deduction should be limited. that's where the taxable -- the interest-free bonds should be limited. that's where the state and local taxes should be. i think romney needs to not only remind people that he's lowering middle class tax rates and that their after-tax take-home pay will go up, but that he will not take away the mortgage deduction and other deductions from the middle class. that's what i'm saying. he needs to clinch the deal by just saying that and then prove these numbers that we're going to have a middle class tax cut. what's wrong with that? right now. he should say that. beef up his position. >> when are you going to start running, larry? >> i've got to go interview him because that's the only time i get down time with him. i know he's got the right idea. i know we've got the right idea. thanks a million, buddy. >> thank you. coming up on "kudlow," apple iphone supplier foxconn closes its factory in china after a 2,000-person brawl breaks out. these guys are fighting their

employer, the communist government and some say they are fighting the u.s. as well. will the chinese stand for this, or are they going to crack down? our next guest gordon chang says this could be just the beginning. that's next up. [ male announcer ] when a major hospital

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a riot broke out at the chinese foxcomn factory where iphones are assembled. 2,000 employees tore through the plant against their employer and chinese government. is china going to stand for this, or is this the beginning of something much beginner? joining me now is "forbes" columnist gordon chang. what's going on here? are though angry over wages, are they angry at the chinese communist government? what's going on here? >> all the above. really what happened is foxconn has a regimented system. it's very efficient which is the reason why apple and all the other big electronics companies use it, but it's also dehumanizing. it is just regimented, and that's why you've seen all of these protests, the suicide at foxconn plants for the last two years in china. >> they are making electronics, among other apple, hp, microsoft, dell, and a whole variety of others.

>> sony. >> very important. >> yes. >> now, at what point if these internal company riots continue do the chinese government crack down with tinemen 2 or 2.0 or 3 or whatever? at what point does the chinese government crack down? >> they will try do that, but i don't think they can. the present leaders don't have the legitimacy with the military to be able to say go out and kill 2,000 chinese. i don't think the generals and the admirals are going to say yes, so i think that essentially we're going to have a situation where the chinese people are going to be able to demonstrate on the streets and pretty much get what they want. >> just spread around the country? >> yeah. so far we've seen these environmental protest in the eastern part of china where the communist party officials have had to give up within 24 hours because people were so insistent and the crowds were so big. >> it sounds like these factories have soviets inside the old soviets, okay? >> right. >> and what i'm trying to figure out is at what point is this so disrupt you have to chinese communist rule that they must do

something about it. >> they try to because there's so many workers and right now the workers have too much bargaining power because the work force is getting smaller. you know, the labor is really needed so the communist party can't go in and start killing people. it just wouldn't work. >> this thing could take a course of its own, take on a life of its own. >> absolutely, and we've seen these factory protests, not only at foxconn but other manufacturers but basically the party is helpless. >> gordon change, thank you very much. tough stuff. coming up, folks. liberal hollywood shilling for obama has reached unhealthy heights. primetime tv viewers could be force fed pro obama care propaganda on two hit tv shows, "grey's anatomy" and "modern family." really what. else is new? emmy-nominated actress and conservative activist janine turner will sound out about the whole story. hang on, folks. we'll be right back.

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are any of you voting for mitt romney? [ applause ] there's 40 republicans and the rest godless liberal homosexuals. see, that's why kelsey grammer didn't come tonight. >> all right. that was jimmy kimmel hosting the emmy awards last night, and while it's no surprise hollywood traditionally favors democrats, seems like the shilling for obama this year has reached new heights. take this for example, hit tv shows like "grey's anatomy,"

"modern family" could help soon promote obama care and here's how they are in the tank for obama care, big fans asking for stars to send pictures like this to pledge allegiance to obama. one hollywood star managed to escape the grips of hollywood. janine turner. i'm not shocked by this hollywood thing. what's interested me as i've watched you the many years on the air and listened to you on radio is how you escaped the liberal left wing jaws of hollywood. how did you get to be so good, as you are, having had that influence hovering over you? >> well, i guess i just stayed true to my convictions which was a little bit hard to do. i mean, when i was a newcomer in hollywood, you know, rooming with demi moore on "general hospital" all running off to jane fonda parties but i never d.i've always strangely had an appreciation for our founding fathers, and my dad is a west

pointer and flew in the air force, and i just thought i'm not running off to that jane fonda party and somehow just -- i did escape. i descape, but i've been at many emmy awards ceremonies like that, to hear that crowd. what's happening to freedom of speech? it's just unner joining. i've been sitting in those audiences counting the minutes to get out. >> turning off middle america. the interesting thing is they won with obama in 2008. i'm not so sure they are going to win with obama this year. i think this is a much tougher one, but, you know, reagan -- i worked for reagan. reagan whooped them twice. george papa bush once and w. a couple of times. the country doesn't necessarily listen to hollywood on this political crap, do they? >> i hope not. i think that there is -- there is the demographic out there that just watches reality show and tv and they are creating fiction in hollywood and this endorsement of obama is based on some sort of fictional reality.

i cannot believe swearing allegiance to obama. that's dictatorship. we swear allegiance to our republic. we don't swear allegiance to a person, any person or a president. we send them to washington, d.c., to be sworn to protect our constitution so there's -- there's a synap missing in hollywood, living in a surreal world and it's frightening that there may be a demographic out there that doesn't know any better. >> when you were in that game did, they try to thwart your career? >> well, you know, look, i can guarantee there you were some republicans sitting in that audience last night, at the emmys, but they are not about to speak up. listen to the hostility of the crowd, and there's a group, there's a growing like clint eastwood said at the rnc, there are some republicans out there, but they are afraid to get really, really vocal because that have hostility, so, yes, it does affect employment, it does. >> did you ever go head to head

with one of them on your show? >> you know, i haven't, and i really should. that would be something, wouldn't it? that's a good idea. >> i mean, i've seen you do it on another networks and i love to watch it, to tell you the truth. i think would be really cool to have them on your show. go toe to toe. because you know stuff. i have heard you, they know stuff. they mostly don't know stuff. there may be some exceptions, but they mostly don't know stuff. have no rights to be giving people opinions about political issues about which they know virtually nothing. they are just dummies. >> well, it's scary. it really is frightening. i'm very upset by this pledging allegiance to obama business. i think that that's the beginning of the end of our country if people fall for that. >> so what if romney wins? what if romney wins? do they disappear for a while, or is it just a little bit of a respite and they come right back out of the woodwork? >> well, they certainly didn't disappear with george w. bush. i mean, they were ruthless, so i don't think they are going to disappear. i just -- i just pray we do win. i pray romney does win. >> okay.

if i put romney right in with you right now, what advice would you give him? okay. looked a little shaky lately. the polls are still close though. he seems to be coming back with my kind of supply side tax cut package. what would you say? >> to romney? >> right now. >> i've had him on my show and he has a spark. he has -- i was asking some elementary questions. he has a reagan quality about him, and if he could just hone in on that a little bit. just trust his charisma and his ability to really nurture the american people, and if people can zone into that, he does have a bit of a reagan quality, i believe. >> i mean, don't you -- i've called it the most underrated politician around. >> yes, yes. >> we will see if that's right or wrong. don't you think people will see through, see a good man. i was talking earlier. if you look at some of the numbers in the tax returns, janine. it's possible he gave $50 million in charitable contributions in the last 20 years, $50 million. >> i do think he's a good man. i think he's a good man and will

do a great job with this country and he'll stick to conservative principles. just constitutional principles and get our -- we're playing off a cliff here. i believe if obama is re-elected we're looking at a $20 trillion debt. we can't sustain our country that way. >> janine turner, thank you very much. >> thank you. >> appreciate t.hope you come back. >> that's it for tonight's show. >> appreciate it. >> thanks for watching. a very brave woman that janine turner. seen her around, and she speaks her mind. good to have a conservative on that side of the street. i'm larry kudlow. we'll be back tomorrow night. [ man ] not only that, the silverado's powertrain warranty is 40,000 miles more than ford. and this workhorse gives you the power of a v8 with the highway fuel economy of a v6. incredible! right? an amazing test drive. i agree.

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